(Yicai Global) Oct. 14 -- An insurance broker under Chinese Internet financial platform Du Xiaoman Financial has received a CNY560,000 (USD78,000) fine for deceiving policyholders and misusing insurance terms, according to local watchdogs in China's Heilongjiang province.

Du Xiaoman Insurance Brokerage was fined CNY280,000 for cheating policyholders and the same amount for failing to use insurance terms in accordance with regulations, a series of fines disclosed by the Heilongjiang Banking and Insurance Regulatory Bureau showed yesterday. Bai Yu, the insurer's legal representative and general manager, was also handed a CNY120,000 penalty.

Baidu Finance acquired Heilongjiang Lianbao Longjiang Insurance Broker in 2017 and renamed it Du Xiaoman Insurance Brokerage last year. In April 2018, Baidu split its financial services business and founded Du Xiaoman Financial, which has business licenses for payment, credit, banking, insurance broker, fund sales, and consumer finance.

With a registered capital of CNY50 million (USD7 million), Du Xiaoman Insurance Brokerage falls under Du Xiaoman Financial.

Editor: Futura Costaglione